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Exporters of non-primary products will no longer have to worry about the return of foreign exchange earnings. According to the bill prepared by the Ministry of Finance, they will be able to transfer the proceeds to the accounts of any banks abroad, and not only to the accounts of the so-called authorized banks.

Repatriation and unnecessary requirements for foreign accounts impede the entry of Russian business into foreign markets and do not contribute to the growth of non-resource exports, said Finance Minister Anton Siluanov. In addition, the current foreign exchange legislation significantly increases the transaction costs of companies, and in some cases leads to the illegal payment of fines. Therefore, in recent years, the state has been systematically moving towards the liberalization of foreign exchange earnings, the minister said.

In 2020, the requirement to return foreign exchange earnings for ruble contracts was canceled, the Russian Export Center (REC) recalled. The new bill provides for such mitigation for contracts in foreign currency. The law is expected to come into force on July 1, 2021.

Exporters of non-primary products will be able to simply deposit money to an account abroad and use it at their own discretion, explained the head of the REC Veronika Nikishina. According to her, this is especially important for the development of e-commerce, since all marketplaces pay for goods through foreign payment systems.

Oksana Kurochkina, managing partner of Pravo for Business, agrees with her. “Currently, most marketplaces pay for goods through PayPal, Payoneer and similar systems of fast payments. From the point of view of Russian currency control legislation, this is a violation, but when the exporter transfers money to an authorized Russian bank within 45 days, the penalty for the violation is not will be “, – she said. The new bill stipulates that this complexity will be eliminated.

At the same time, the cancellation of repatriation will not affect agreements providing loans in foreign currency, as well as foreign trade agreements, under which advance payments were made to non-residents in foreign currency, the Ministry of Finance specified. This is important for the fight against illegal withdrawal of funds abroad.

The new bill is part of a program to soften currency legislation, which is envisaged by the international cooperation and export national project. Last year, the state increased the amount for the failure to return which was subject to criminal punishment (from 100 million rubles instead of 9 million rubles). And since the end of July 2020, administrative fines for non-return of proceeds or delays have significantly decreased. If earlier fines amounted to 75-100% of non-accruals of foreign exchange earnings, now their size is 3-10% under contracts in rubles and up to 5-30% under contracts in foreign currency. In many cases, the warning replaced a fine, and for contracts up to 200 thousand rubles, liability is not provided at all.

A source: Russian newspaper

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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